Govt policy 'could lead to higher gas prices' - 27/02/2012
Government strategies for future energy generation could end up costing consumers money if the country is unable to acquire cheap gas supplies, a new report has stated.
A study by think-tank Policy Exchange warned these plans are based on the assumption that wholesale gas prices will continue to increase.
However, it said this is a flawed strategy that fails to take into account the potential for cheap shale gas supplies to come on to the market.
If this happens and the UK is already locked into its current course, households in the country could end up significantly overpaying for their energy.
Policy Exchange said the government is "unnecessarily gambling with billpayers' money" and added the Department of Energy and Climate Change's own figures have warned the cost of its policies will be £22 billion higher if gas prices fall than if they rise.
Recently, energy minister Charles Hendry said the UK must become smarter in how it uses energy and ensure it uses a range of sources to generate power in the coming years.
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